Shaw 2011 Annual Report Download - page 93

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Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2011, 2010 and 2009
[all amounts in thousands of Canadian dollars except share and per share amounts]
or equity instruments, and acquisition related restructuring costs must be expensed, (v) for
business combinations completed in stages, identifiable net assets are recognized at fair value
when control is obtained and a gain or loss is recognized for the difference in fair value and
carrying value of the previously held equity interests, (vi) the fair value of identifiable assets
and liabilities attributable to non-controlling interests must be recognized, and
(vii) non-controlling interests are recorded at either fair value or their proportionate share of the
fair value of identifiable net assets acquired.
Consolidated Financial Statements and Non-controlling Interests
Effective September 1, 2010, the Company early adopted CICA Handbook Section 1601
“Consolidated Financial Statements” and Section 1602 “Non-controlling Interests” which replace
Section 1600 “Consolidated Financial Statements”. The new standards provide guidance for the
preparation of financial statements and accounting for a non-controlling interest in a subsidiary in
consolidated financial statements subsequent to a business combination. For presentation and
disclosure purposes, non-controlling interests are classified as a separate component of
shareholders’ equity. In addition, net income and comprehensive income is attributed to the
Company’s shareholders and to non-controlling interests rather than reflecting the non-controlling
interests as a deduction to arrive at net income and comprehensive income.
Recent accounting pronouncements
International Financial Reporting Standards
In February 2008, the CICA Accounting Standards Board confirmed that Canadian publicly
accountable enterprises will be required to adopt International Financial Reporting Standards
(“IFRS”), as issued by the International Accounting Standards Board, for fiscal periods
beginning on or after January 1, 2011. These standards require the Company to begin reporting
under IFRS in fiscal 2012 with comparative data for the prior year.
2. BUSINESS ACQUISITIONS AND DISCONTINUED OPERATIONS
Business acquisitions
(i) Television broadcasting businesses
August 31, 2011
Cash(1)
Cumulative
equity
income Total
$$ $
Television broadcasting businesses 1,208,112 2,180 1,210,292
(1) The cash consideration includes $708,000 paid in 2010 for the Company’s initial equity
investment in CW Media and an option to acquire an additional equity interest. The
acquisition-date fair value of the Company’s initial equity investment approximated
$549,000 compared to its carrying value of $558,500 under the equity method of
accounting which resulted in an amount of approximately $9,500 related to transaction
costs which are included in business acquisition, integration and restructuring expenses
in the income statement.
89